The United States Treasury Department said that recent sanctions on Russia would include restrictions on digital currencies beginning March 1st. Also, the White House warned major cryptocurrency exchanges against conducting trades with sanctioned companies. Later today, the government said that it would take action against anyone who violates Russia’s sanctions, even if they do it through the use of digital currency.
Bloomberg also said that the White House had asked major cryptocurrency exchanges to confirm that their systems could not be used to get around Russian sanctions. Some Russian banks have been cut off from the SWIFT payment network, and their investments in other countries have been frozen by the US and other countries.
Ukrainian officials have urged major exchanges to completely block Russian users. However, the decision drew condemnation from the community, as it contradicts the depoliticized and decentralised nature of cryptocurrency. Kraken, which has a substantial presence in Russia, said that it would not do so unless legally required. Binance has said that it will block access to companies that have been banned by the US government, but not to people who live there.